Detroit Sues Over Debt Deals

Detroit leaders are suing to invalidate several Wall Street deals that allowed the city to borrow more than $1.4 billion in 2005 for its underfunded pension plans, arguing that the agreements were illegal and shouldn't be repaid.

In a lawsuit filed in U.S. Bankruptcy Court in Detroit, city lawyers said the deals reached under a former mayor, Kwame Kilpatrick, led the city to borrow more than the state's debt limit, resulting "in the creation of city debt that was not authorized" by state law. Michigan cities,...